As a business owner, you’re used to wearing a million hats and doing things yourself. But sometimes, you need a helping hand. Some tasks, like accounting, can be time-consuming and downright stressful— especially if you’re not an expert. If you’re struggling to manage your own books, hiring an accountant may be a good fit for you. But before you pull the trigger and hire an accountant, you need to ask yourself, Do I need an accountant for my small business?
Do I need an accountant? 5 Questions to ask
So … when do you need an accountant? The truth? Every business is different. Some companies may need to hire an accountant sooner rather than later, especially if they are growing quickly. Other businesses, like startups, may be able to hold off for a few months or years.
Determining whether or not your business needs an accountant isn’t always an easy decision. To help you decide which route to take and if it’s time to find an accountant, ask yourself some questions.
1. Can I do the accounting myself?
When determining if you need an accountant, ask yourself if you can do the accounting yourself. If the answer is no, you may need to start hunting for an accountant.
Many business owners have little to no accounting experience—and that’s OK. According to one study, 60% of business owners feel they are not very knowledgeable when it comes to accounting and finance. Sure, you may have taken an accounting class or two back in high school or college. But even with that experience, you may not be comfortable taking on the task of accounting for your business.
So … where do you fall? Are you part of the 60%? Or, are you part of the 40% that is ready to tackle accounting tasks?
If you fall into the 60%, you may need to consider hiring an accountant. If you’re part of the 40%, you may be able to handle accounting on your own manually or by using accounting software (and of course passing your books on to an accountant as needed).
Not sure where you fit in? To figure out if you can do the accounting yourself, ask the following questions:
How much accounting knowledge do I have? Am I willing to learn more about accounting? Am I tech-savvy? Can I use/learn accounting software? Can I keep up with tax laws and changes? 2. Do I have time to do my own accounting?
Next, ask yourself if you even have time to do accounting yourself. What does your schedule look like? How many tasks are you juggling at once?
If you don’t have time to take on accounting responsibilities and keep your books up-to-date, it may be time to seek help from an accountant.
The last thing you want to do is rush making entries in your books and wind up with accounting mistakes. Blunders will only lead to more issues down the road for your business, including tax problems and potential penalties.
3. What can an accountant do for me?
To decide if it’s worth it to hire an accountant, ask yourself, What can an accountant do for me?
There are a number of things an accountant can do for your business. Accountants can:
Analyze your finances for you Prepare taxContinue reading